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Oct 9, 2018 - by four-fifths of the City Council. It will become effective .... who shall be available 24 hours per day, seven days per week for the purpose of: (1).

STAFF REPORT

DATE:

October 9, 2018

TO:

Bryan Montgomery, City Manager

FROM:

Joshua McMurray, Planning Manager

SUBJECT:

ADOPTION OF AN URGENCY ORDINANCE OF THE CITY OF OAKLEY ADOPTING AN INTERIM MEASURE IMPOSING A MORATORIUM ON THE ISSUANCE OR RENEWAL OF USE PERMITS, VARIANCES, BUILDING PERMITS, BUSINESS LICENSES OR ANY OTHER ENTITLEMENTS OR PERMITS PROVIDING FOR THE USE, COMMENCEMENT, ESTABLISHMENT OR OPERATION OF SHORT-TERM RENTALS WITHIN THE CITY OF OAKLEY

Approved and Forwarded to the City Council

Summary and Recommendation The Oakley Municipal Code does not define, enable or permit short term rentals of any kind and there are no enforcement provisions specific to short term rentals in the Municipal Code. This lack of specificity currently limits the City’s enforcement efforts on short term rentals as a land use, and focuses instead on the related symptomatic or incidental problems, such as responding to noise complaints or the conduct of other unpermitted activities. It is also difficult to determine if and when a given private residence is being used as a short term rental. Without appropriate regulations, a short-term rental business could locate in the City of Oakley in a manner that is inconsistent with the City’s goals and vision for our community. Staff recommends that the Council adopt the attached interim emergency ordinance temporarily prohibiting the establishment and operation of a short-term rental businesses while the City completes further study and adopts an appropriate ordinance and regulations regarding the location, licensing and operation of such businesses. The attached ordinance is an urgency measure which requires approval by four-fifths of the City Council. It will become effective immediately upon adoption. Background and Analysis Staff brought forward an Ordinance to regulate short-term rentals at the September 25, 2018 City Council Meeting (Staff Report attached). The City Council has received complaints and public comments at its September 25, 2018 meeting indicating that the proliferation of non-hosted short-term rentals within the City adversely affects the 64

Short Term Rental Moratorium October 9, 2018

quality of life and the character of the City’s residential neighborhoods. The City Council directed Staff to bring back an urgency moratorium that would allow the City to not allow short-term rentals as the City researches and drafts an appropriate Ordinance. The City’s Municipal Code does not expressly allow short-term rental land uses, but short-term rentals are currently taking place within the City. The unregulated expansion of short-term rentals would undermine the City’s achievement of its long-term planning goals and investments. In addition, short-term rentals pose challenges for enforcement and tax collection because precise information on their locations, availability, revenues earned, and actual occupancy rates are difficult to obtain. In brief, short-term rentals pose an immediate threat to public health, safety, and welfare. The City has an overriding interest in planning and regulating the use of property within the City because without stable, well-planned neighborhoods, the quality of life and the character of the City’s neighborhoods can quickly deteriorate and suffer adverse social, environmental, and economic conditions. A moratorium on non-hosted short-term rentals would allow time for the City to revise its zoning code to provide for regulation of non-hosted short-term rentals in a manner that protects public health, safety, and welfare. Government Code Section 65858 allows a local agency to adopt an interim ordinance prohibiting any uses which may be in conflict with a zoning proposal which the City is considering or intends to study within a reasonable period of time. The interim ordinance may be adopted as an urgency measure, without following the procedures otherwise required for a zoning ordinance, provided the City determines that the ordinance is necessary to protect the public health, safety and welfare. Staff believes there is ample evidence to support and justify such a finding in this case. The interim ordinance will be effective for an initial 45 day period and may be extended twice, in specified maximum increments, for a total period not to exceed 2 years. Summary of Moratorium The proposed moratorium on short-term rentals provides that any residential property owner in the City of Oakley will be prohibited from renting the residential property, or having an intermediary rent the property, for a term of less than 30 days. The California Constitution vests the City with the authority to impose a moratorium on short-term rentals to protect the health, safety, and welfare of its citizens, and to regulate zoning. In addition, the California Government Code enables the City to immediately protect and preserve the public peace, health, and welfare by prohibiting any uses that may be in conflict with a contemplated general plan, specific plan or zoning proposal that the legislative body, planning commission or planning department is considering. Therefore, the City can impose a moratorium provided it can demonstrate the need for it. California Environmental Quality Act (CEQA) 65

Short Term Rental Moratorium October 9, 2018

The Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly; and it prevents changes in the environment pending the completion of the contemplated municipal code review. Fiscal Impact There is no direct fiscal impact associated with the adoption of the attached ordinance; however, implementation of the ordinance may result in indirect costs arising out from the preparation of the additional studies and periodic reports to the City Council required by the ordinance. Recommendation Staff recommends that the Council adopt the attached interim emergency ordinance temporarily prohibiting the establishment and operation of a short-term rental businesses while the City completes further study and adopts an appropriate ordinance and regulations regarding the location, licensing and operation of such businesses. The attached ordinance is an urgency measure which requires approval by four-fifths of the City Council. It will become effective immediately upon adoption. Attachments 1. September 25, 2018 Staff Report regarding Short-Term Rentals 2. Proposed Interim Emergency Ordinance

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STAFF REPORT

DATE:

September 25, 2018

TO:

Bryan Montgomery, City Manager

FROM:

Joshua McMurray, Planning Manager

SUBJECT:

Approved and Forwarded to the City Council

An Ordinance Adding Chapter 14 of Title 5 of the Oakley Municipal Code regarding the Permitting of Short-Term Rentals within the City Limits

Background and Analysis This is a City-initiated amendment to the Oakley Municipal Code dealing with the Permitting of Short-Term Rentals within the City Limits. Within the past several months, there have been a handful of inquiries from residents who live next to or near properties currently being advertised and rented out as a “short-term rental”. At the time this Staff Report was written, searching on Airbnb.com resulted in 10 properties being rented either on a nightly or weekly basis and searching vrbo.com resulted in 2 such properties. With the absence of any defined definitions and/or regulations on the subject matter, the City does not have an application process or an enforcement mechanism in regards to this type of rental. The purpose of this new Chapter (Title 5, Chapter 14, entitled “Short-Term Rentals”) is to establish regulations for the use of a privately owned dwelling unit as short-term rentals in order to minimize the adverse effects of short-term rentals on the surrounding residential neighborhoods, to ensure that short-term rentals are consistent with the City’s municipal code, and to preserve the residential character of the neighborhoods where short-term rentals are located. As described in the “Purpose” section of the Draft Ordinance, this new Chapter is not intended to provide any person with the right or privilege to use a dwelling unit as a short-term rental where such use is not otherwise allowed by law, homeowner’s association agreement, rental agreement, or any applicable conditions, covenants, and restrictions to the dwelling unit that may prohibit the use of such dwelling unit as a short-term rental. The proposed amendment to the Oakley Municipal Code define a “Short-term rental unit” as follows: 67

"Short-term rental unit" means a privately owned residential dwelling, such as, but not limited to, a single family dwelling or multiple family building, apartment unit, condominium, duplex, as those terms are defined at Section 9.1.202 of this Code or any portion of such dwellings, rented for occupancy for dwelling, lodging, or sleeping purposes for any period of 30 consecutive days or fewer. A short-term rental unit does not include a hotel or motel, as those terms are defined at Section 9.1.202 of this Code, or other business in which rooms are rented as the principal use of a building devoted to lodging. A short-term rental unit shall be considered a “hotel” for the purposes of Chapter 3.2 of this Code related to Uniform Transient Occupancy Tax.” The Ordinance also details when a short-term rental permit is required, the application process and approval requirements, the operational requirements and standard conditions placed on a permit, and procedures for violations of the Ordinance. California Environmental Quality Act (CEQA): The amendments to the Zoning Code are exempt from CEQA pursuant to Section 15061(b)(3), Review for Exemption, because it can be seen with certainty that the project will not have a significant effect on the environment; therefore the project is not subject to CEQA. Fiscal Impact Staff time and costs associated with drafting and adopting the ordinance are onetime costs. Once the ordinance is in place, the City will need to establish a Short Term Rental Permit Application Fee that will be charged to any property establishing a shortterm rental as detailed within the attached Ordinance. Pending the adoption of a Fee, applications can be reviewed and approved based on a time and materials charge. In addition to the application fee, the owner or operator of a short-term rental will be required to obtain a transient occupancy registration certificate for purpose of its obligation to pay transient occupancy taxes under Chapter 3.2 of this Oakley Municipal Code. Recommendation Staff recommends the City Council waive the first reading and introduce the attached Ordinance amending the Oakley Municipal Code by adding Title 5, Chapter 14, entitled “Short-Term Rentals”. Attachments 1. Proposed Ordinance Adding Chapter 14 to Title 5 of the Oakley Municipal Code

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ORDINANCE NO._____ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF OAKLEY REGARDING The City Council of the City of Oakley, California does ordain as follows: Section 1. The Oakley Municipal Code is hereby amended by adding Title 5, Chapter 14, entitled “Short-Term Rentals” to read as follows: TITLE 5, CHAPTER 14 Section 5.14.102

SHORT-TERM RENTALS

Title of Ordinance

This Chapter shall be referred to as the "Short-Term Rental Ordinance." Section 5.14.104

Purpose

A. The purpose of this Chapter is to establish regulations for the use of privately owned dwelling unit as short-term rentals in order to minimize the adverse effects of short-term rentals on the surrounding residential neighborhoods, ensure that short-term rentals are consistent with the City’s municipal code, and preserve the residential character of the neighborhoods where short-term rentals are located. B. This Chapter is not intended to provide any person with the right or privilege to use a dwelling unit as a short-term rental where such use is not otherwise allowed by law, homeowner’s association agreement, rental agreement, or any applicable conditions, covenants, and restrictions to the dwelling unit that may prohibit the use of such dwelling unit as a short-term rental. Section 5.14.106

Definitions

A. For purposes of this Chapter, the following words and phrases shall have the following meanings: 1. "Applicable laws, rules and regulations" means any laws, rules, regulations and codes (whether local, state or federal) pertaining to the use and occupancy of a privately owned dwelling unit as a short-term rental. 2. "Applicant" means the owner of the short-term rental unit or the owner's authorized agent or representative, referred to within as an “operator.” 3. "City Manager" means that person acting in the capacity of the City Manager of the City of Oakley or his or her designee. 4. "Good neighbor brochure" means a document prepared by the City that summarizes the general rules of conduct, consideration, and respect, including without limitation provisions of the Oakley Municipal Code and other applicable laws, rules, or regulations, pertaining to the use and occupancy of short-term rental units. 1

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5. "Local contact person" means the person designated by the owner or the operator who shall be available 24 hours per day, seven days per week for the purpose of: (1) responding within 60 minutes to complaints regarding the condition, operation, or conduct of occupants of the short-term rental unit; and (2) taking remedial action to resolve any such complaints. The local contact person may be the owner or operator. 6. "Owner'' means the person(s) or entity(ies) that hold(s) legal and/or equitable title to a short-term rental. 7. "Operator'' means the owner or the designated agent or representative of the owner who is responsible for compliance with this Chapter. 8. "Property" means a residential legal lot on which a short-term rental unit is located. 9. "Responsible person" means an occupant of a short-term rental unit who is at least 21 years of age and who is legally responsible for ensuring that all occupants of the short-term renal unit and their guests comply with all applicable laws, rules, and regulations pertaining to the use and occupancy of a short term rental unit. 10. "Short-term rental unit" means a privately owned residential dwelling, such as, but not limited to, a single family dwelling or multiple family building, apartment unit, condominium, duplex, as those terms are defined at Section 9.1.202 of this Code or any portion of such dwellings, rented for occupancy for dwelling, lodging, or sleeping purposes for any period of 30 consecutive days or fewer. A short-term rental unit does not include a hotel or motel, as those terms are defined at Section 9.1.202 of this Code, or other business in which rooms are rented as the principal use of a building devoted to lodging. A short-term rental unit shall be considered a “hotel” for the purposes of Chapter 3.2 of this Code related to Uniform Transient Occupancy Tax. 11. "Short-term rental permit" means a permit that allows the use of a privately owned residential dwelling as a short-term rental unit pursuant to the provisions of this Chapter. 12. "Transient" for purposes of this Chapter means any person who seeks to rent or who does rent a short-term rental unit for a period less than 30 consecutive days or fewer. Section 5.14.108

Authorized agent or representative

A. Unless an owner intends to directly provide for the short-term occupancy of a short-term rental unit, the owner shall designate an operator who shall ensure compliance with the requirements of this Chapter on behalf of the owner. B. Notwithstanding subsection (A), the owner shall not be relieved from any personal responsibility for compliance with the requirements of this Chapter and shall be subject to any applicable remedies for noncompliance, regardless of whether such noncompliance was committed by the operator or the occupants of the short-term rental unit or their guests. 2

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Section 5.14.110

Short-term Rental Permit Required

A. It shall be unlawful for an owner or operator to rent any short-term rental unit to any transient without having a valid short-term rental permit issued by the City pursuant to the provisions of this Chapter. B. A short-term rental permit shall be valid for a period of one (1) year from the date of issuance, and shall be renewed on or prior to the anniversary of the original permit issuance to remain valid. C. A short-term rental permit may not be transferred to another owner or operator, does not run with the land, and is valid only for the original location for which it is issued. Section 5.14.112

Application

A. The owner or operator must submit the following information on a short-term rental permit application form provided by the City: 1. The name, address, and telephone number of the owner of the short-term rental unit; 2. The name, address, and telephone number of the operator, if the owner will not directly provide for the short-term rental; 3. The name, address, and twenty-four hour telephone number of the local contact person; 4. The address of the proposed short-term rental unit; 5. The number of bedrooms and the applicable overnight and daytime occupancy limit of the proposed short-term rental unit; 6. Acknowledgement that the operator has received and reviewed the good neighbor brochure and will provide the brochure to all transients; 7. A copy of a transient occupancy registration permit issued under Section 3.2.006(d) of this Code; 8. Such other information as the City Manager deems reasonably necessary to administer this Chapter; and 9. Payment of the application fee established separately by resolution of the City Council. B. A short-term rental permit application may be denied if the applicant has had a prior shortterm rental permit for the same unit revoked within the 12 calendar months that preceded the effective date of the application. C. Within 14 days of a change of property ownership, change of operator, or any other change in material facts pertaining to the information contained in the short-term rental permit application form, the owner or operator shall submit an application and requisite application 3 71

fee for a new short-term rental permit, which must be obtained prior to continuing to rent the short-term rental unit. Section 5.14.114

Criteria for Approval and Renewal of a Short-term Rental Permit

A. The applicant has the burden of proof to demonstrate compliance with each applicable criterion for approval or renewal of the permit. B. To receive permit approval, an applicant must demonstrate the following: 1. The owner or operator shall demonstrate that it will comply with all the obligations and requirements of Sections 5.14.116 and 5.14.118. 2. A completed checklist for fire safety (fire extinguishers, smoke alarms, carbon monoxide detectors, etc.) shall be required with each annual permit application and renewal. It is the owner's responsibility to ensure that the short-term rental unit is and remains in substantial compliance with all applicable laws, rules and regulations including those regarding fire, building and safety, and health and safety. 3. At the time of application, the owner or operator of a short-term rental shall not have been found to be in non-compliance of any provision of this Code for the subject short-term rental unit. A voluntary assurance of compliance or negotiated compliance agreement will satisfy the requirement that there be no pending actions or violations. 4. The owner or operator shall have a current business license in accordance with the Chapter 3.5 of this Code. 5. The owner or operator shall have obtained a transient occupancy registration certificate for purpose of its obligation to pay transient occupancy taxes under Chapter 3.2 of this Code. Section 5.14.116

Operational Requirements and Standard Conditions

A. The owner or operator shall use reasonably prudent business practices to ensure that the short-term rental unit is used in a manner that complies with all applicable laws, rules, and regulations pertaining to the use and occupancy of the subject short-term rental unit, including this Chapter. B. The minimum number of days that a short-term rental unit shall be occupied is three days, two nights. Occupancy of a short-term rental unit by any transient for fewer than three days, two nights is prohibited. C. The maximum number of overnight guests for a short-term rental unit shall not exceed two persons per bedroom, except that children under the age of 4 shall not be counted for purposes of calculating this limitation so long as the children sleep in the same bedroom as at least one of their parents or legal guardians. Additional daytime guests are allowed between the hours of 7:00 a.m. and 10:00 p.m., with the maximum daytime guests not to exceed two persons per bedroom with a maximum of 20 guests allowed for five bedrooms or more. The following table illustrates the maximum number of occupants:

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Number of Bedrooms 0 - Studio 1 2 3 4 5 6 7

Total of Overnight Occupants

Total Daytime Occupants (Including Number of Overnight Occupants) 4 4 8 12 16 20 20 20

2 2 4 6 8 10 12 14

D. A short-term rental unit shall not change the residential character of the outside appearance of the residence, either by the use of colors, materials, lighting, or any advertising mechanism. E. All parking associated with a short-term rental unit shall be entirely on-site, in the garage, carport, and driveway or otherwise off of the public street. F. Occupants of the short-term rental unit shall comply with all standards and regulations stated in Title 4, Chapter 2 of this Code concerning noise. G. The owner or operator shall provide each occupant of the short-term rental unit with the following information prior to occupancy of the unit and shall post such information in a prominent location within the unit: 1. The contact information for the operator, or if no operator then the contact information for the the owner, with 24-hour availability; 2. The maximum number of overnight occupants and the maximum number of daytime occupants as permitted under this Chapter; 3. Trash pick-up day and applicable rules and regulations pertaining to leaving or storing trash on the exterior of the property; 4. A copy of Title 4, Chapter 2 of this Code concerning noise; and 5. Notification that the occupant or owner may be cited or fined by the City in accordance with this Code. Section 5.14.118

Operations

A. While a short-term rental unit is rented, the owner, operator, or local contact person shall be available 24 hours per day, seven days per week for the purpose of responding within 60 minutes to complaints regarding the condition, operation, or conduct of occupants of the short-term rental unit or their guests. B. The owner, operator, or local contact person shall use reasonably prudent business practices 5

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to ensure that the occupants and/or guests of the short-term rental unit do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate any applicable law, rule or regulation pertaining to the use and occupancy of the short-term rental unit. C. Prior to occupancy of a short-term rental unit, the owner or operator shall obtain the name, address, and a copy of a valid government identification of a responsible person and require such responsible person to execute a formal acknowledgement that he or she is legally responsible for compliance by all occupants of the short-term rental unit and their guests with all applicable laws, rules, and regulations pertaining to the use and occupancy of the short-term rental unit. D. Prior to occupancy of a short-term rental unit, the owner or operator shall obtain from the responsible person the make, model and license of all vehicles of overnight occupants’ vehicles to be parked at the property. E. The owner, operator, or local contact person shall, upon notification that the responsible person and/or any occupant and/or guest of the short-term rental unit has created unreasonable noise or disturbances, engaged in disorderly conduct, or committed violations of any applicable law, rule or regulation pertaining to the use and occupancy of the subject short-term unit, promptly respond within 60 minutes and appropriate manner to immediately halt or prevent a recurrence of such conduct by the responsible person and/or any occupants and/or guests. Failure of the owner, and/or operator to respond to calls or complaints regarding the condition, operation, or conduct of occupants and/or guests of the short-term rental unit within 60 minutes in an appropriate manner shall be subject to all administrative, legal, and equitable remedies available to the City. F. The owner, operator, or local contact person shall report to the City Manager the name, violation, date, and time of disturbance of each person involved in three or more disorderly conduct activities, disturbances, or other violations of any applicable law, rule, or regulation pertaining to the use and occupancy of the subject short-term unit within 24 hours of the third violation or disturbance. G. Trash and refuse shall not be left stored within public view, except in proper containers for the purpose of collection by the City's authorized waste hauler on scheduled trash collection days. The owner or operator shall use reasonably prudent business practices to ensure compliance with all the provisions of Title 4, Chapter 20 of this Code. H. The owner or operator shall post the current short-term rental permit number on or in any advertisement appearing in any newspaper, magazine, brochure, trade paper, website, etc., that promotes the availability or existence of a short-term rental unit. I. The City Manager shall have the authority to impose additional conditions on the use of any short-term rental unit to ensure that any potential secondary effects unique to the subject short-term rental unit are avoided or adequately mitigated. J. The standard conditions set forth herein may be modified by the City Manager, or designee, upon request of the owner or operator based on site-specific circumstances for the purpose of allowing reasonable accommodation of a short-term rental unit. All requests must be in writing and shall identify how the strict application of the standard conditions creates an 6 74

unreasonable hardship to a property such that, if the requirement is not modified, reasonable use of the property for a short-term rental would not be allowed. Any hardships identified must relate to physical constraints to the subject site and shall not be self-induced or economic. Any modifications of the standard conditions shall not further exacerbate an already existing problem. Section 5.14.120

Violations

A. A violation of any provision of this Chapter by any occupant, owner, or operator shall constitute grounds for modification, suspension, or revocation of the short-term rental permit. In addition, the failure of the owner or operator to satisfy any of its obligations and requirements of Title 3, Chapter 2 of this Code concerning transient occupancy taxes shall be an independent basis for modification, suspension, or revocation of any permit issued under this Chapter. B. Whenever any owner or operator fails to comply with any provision of this Chapter, the City, after giving the operator or owner ten days written notice specifying the time and place of a hearing before the City Council, and requiring him to show cause why the shortterm rental permit should not be modified, suspended, or revoked, may modify, suspend, or revoke the permit held by the operator or owner. C. The City may enforce this Chapter, including the terms and conditions of any permit granted under this Chapter, by any means provided for in Title 1, Chapter 5 of this Code or by any other means authorized by law. Section 5.14.122

Fees

A. The City Council may establish and set by resolution all fees and charges as may be necessary to effectuate the purpose of this Chapter. Section 2.

Severability.

In the event that any section or portion of this ordinance shall be determined to be invalid or unconstitutional, such section or portions shall be deemed severable and all other sections or portions hereof shall remain in full force and effect. Section 3. California Environmental Quality Act (“CEQA”) finding. The City Council has analyzed this ordinance and determined it is exempt from the California Environmental Quality Act (CEQA) under CEQA Guidelines Section 15061(b)(3), which provides that CEQA only applies to projects that have the potential for causing a significant effect on the environment. Where, as here, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Section 4. Effective Date and Publication. This ordinance shall take effect and be in force and effect thirty (30) days from and after the date of 7

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its passage. The City Clerk shall cause the ordinance to be published within fifteen (15) days after its passage in a newspaper of general circulation, or by publishing a summary of the proposed ordinance, posting a certified copy of the proposed ordinance in the office of the City Clerk at least five (5) days prior to the City Council meeting at which the ordinance is to be adopted, and within fifteen (15) days after its adoption, publishing a summary of the ordinance with the names of the Council Members voting for and against the ordinance. The foregoing ordinance was adopted with the reading waived at a regular meeting of the Oakley City Council on _______, 2018 by the following vote:

AYES: NOES: ABSTENTIONS: ABSENT:

APPROVED:

____________________________________________ Randy Pope, Mayor

ATTEST:

____________________________________________ Libby Vreonis, City Clerk Date

8

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ORDINANCE NO. AN URGENCY ORDINANCE OF THE CITY OF OAKLEY ADOPTING AN INTERIM MEASURE IMPOSING A MORATORIUM ON THE ISSUANCE OR RENEWAL OF USE PERMITS, VARIANCES, BUILDING PERMITS, BUSINESS LICENSES OR ANY OTHER ENTITLEMENTS OR PERMITS PROVIDING FOR THE USE, COMMENCEMENT, ESTABLISHMENT OR OPERATION OF SHORT-TERM RENTALS WITHIN THE CITY OF OAKLEY. WHEREAS, pursuant to the City of Oakley’s police power, the City Council of the City of Oakley ("City Council") has the authority to enact and enforce ordinances and regulations for the public peace, morals and welfare of the City and its residents; and WHEREAS, at a regular public meeting on September 25, 2018, the City Council considered an ordinance that would have amended the Oakley Municipal Code for the purpose of permitting owners of residential dwellings to rent, offer to rent, or advertise for rent said dwellings to a person or group of persons for occupancy, dwelling, lodging or sleeping purposes for a period of less than thirty (30) consecutive calendar days, i.e., “Short-Term Rentals;” and WHEREAS, at the regular public meeting on September 25, 2018, the City Council receiving public testimony from residents living near locations where unpermitted Short-Term Rentals have operated that expressed significant concerns to the City Council of excessive noise, disorderly conduct, overcrowding, traffic congestion, illegal vehicle parking and the accumulation of refuse which required responses from police, Code Enforcement and other City services; and WHEREAS, California Government Code Section 65858 provides that, without following the procedures otherwise required prior to the adoption of a zoning ordinance and for the purpose of protecting the public safety, health and welfare, the City Council may adopt, as an urgency measure, an interim ordinance prohibiting any uses which may be in conflict with “a contemplated general plan, specific plan, or zoning proposal that the City Council, planning commission or the planning department is considering or studying or intends to study within a reasonable time”; and WHEREAS, the City Council is concerned that Short-Term Rentals, which are essentially commercial uses operating within residential zones, may be incompatible with residential uses without effective regulation, and the City Council believes that development standards and implementation regulations for Short-Term Rentals require careful consideration and thorough study; and WHEREAS, to address these issues, as well as the community concerns regarding the proliferation and operation of Short-Term Rentals, it is necessary for the City Council study the potential impacts such uses may have on the public health, safety and welfare; WHEREAS, based on the foregoing facts and the facts presented to the City Council at the meeting at which this Ordinance is introduced and adopted, the City Council finds that issuing use permits, variances, building permits, business licenses, certificates of occupancy, or any other applicable entitlements or permits providing for the use, commencement, establishment and/or 77 00062128.1

operation of Short-Term Rentals prior to the City's completion of its study of the legality, potential impact and regulation of such Short-Term Rentals, would pose a current and immediate threat to the public health, safety or welfare, and that a temporary moratorium on the issuance of use permits, variances, building permits, business licenses, certificates of occupancy, and any other applicable entitlements is thus necessary; and WHEREAS, this Ordinance is an interim urgency ordinance adopted pursuant to the authority granted to the City by Government Code Section 65858 and is for the immediate preservation of the public health, safety and welfare. The facts constituting the urgency are: 1.

The City has received a number of public nuisance complaints emanating from Short-Term Rentals, involving the following: a.

Loud, unnecessary and unusual noises, which have disturbed the peace and quiet of neighborhoods and caused discomfort and annoyance to residents of those neighborhoods;

b.

Apparent over-occupancy of units, which may pose a public health and safety risk;

c.

Excessive on-street parking affecting the ability of residents to park their vehicles within a reasonable distance from their homes; and

d.

Accumulation of trash and debris, including alcoholic beverage containers, in the front yards of Short-Term Rentals, neighboring properties, and rights-of-way.

2.

After receiving complaints of this nature, the City has committed resources to investigate and study the impacts of Short-Term Rentals on the surrounding community; and

3.

Absent the adoption of this Ordinance, the continued existence of unpermitted Short-Term Rentals in the City and an increase in the number thereof may result in an even greater increase in nuisance conditions negatively affecting the well-being of the community, thereby diminishing property values and introducing incompatible land uses to existing neighborhoods or in close proximity thereto; and

4.

Absent the adoption of this Ordinance, an increase in the number and location of Short-Term Rentals may increase the burden upon City services due to enforcement of the established standards and regulations relating to the issuance of permits for Short-Term Rentals; and

78 00062128.1

5.

As a result, it is necessary to establish a temporary, forty-five (45) day moratorium on the issuance or renewal of any use permits, variances, building permits, business licenses, certificates of occupancy, or any other applicable entitlements or permits providing for the use, commencement, establishment and/or operation of new Short-Term Rentals in the City, pending completion of the City's study of the potential impacts of ShortTerm Rentals, and possible implementation regulations relating to the issuance of permits for Short-Term Rentals; and

6.

In addition, it is necessary to prohibit, as a public nuisance, the use of property in any zone of the City for purposes of Short-Term Rental for the duration of this Ordinance, or any extension thereof; and

WHEREAS, the City Council determines, by at least a four-fifths (4/5) vote, that this urgency ordinance is a matter of City-wide importance, is a reasonable and necessary measure designed for the immediate preservation and protection of the public health, safety or welfare of the community, and is in accord with the public purposes and provisions of applicable State and local laws and requirements. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF OAKLEY DOES ORDAIN AS FOLLOWS: SECTION 1. CEQA. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly; and it prevents changes in the environment pending the completion of the contemplated municipal code review. SECTION 2. INCORPORATION. The recitals and statements of fact set forth in the preamble to this Ordinance are true and correct, constitute a substantive part of this Ordinance, and are incorporated herein by this reference. Based on those facts, the City Council finds, determines and declares that this Ordinance is necessary as an emergency measure for the immediate preservation of the public peace, health or safety pursuant to, and as authorized by, Section 65858(a) of the California Government Code. Accordingly, this Ordinance shall become effective immediately upon adoption. SECTION 3. DIRECTION; DEFINITION. It is necessary to establish a temporary, forty-five (45) day moratorium on the commencement, establishment and/or operation of new Short-Term Rentals in the City and on any applications for renewal of Short-Term Rental permits existing on the date this Ordinance is adopted, pending completion of the City's study of the potential impacts and regulation of Short-Term Rentals, and 79 00062128.1

possible amendments to the City's zoning ordinance and related provisions of the Oakley Municipal Code to ensure that adequate development standards and implementation regulations are in effect prior to permitting Short-Term Rentals within the City of Oakley. To that end, the City Manager, with the assistance of the City Attorney, or their designees, are directed to analyze the appropriateness of Short- Term Rentals within the City limits of the City of Oakley, including but not limited to, the desirability of Short-Term Rentals, the appropriateness and effectiveness of separation requirements from adjacent sensitive land uses, and the extent of adequate development standards and regulatory controls, should Short-Term Rentals be deemed appropriate. For purposes of this Ordinance, "Short-Term Rentals" shall mean a privately owned residential dwelling, such as, but not limited to, a single family dwelling or multiple family building, apartment unit, condominium, duplex, as those terms are defined at Section 9.1.202 of this Code or any portion of such dwellings, rented for occupancy for dwelling, lodging, or sleeping purposes for any period of 30 consecutive days or fewer. A short-term rental unit does not include a hotel or motel, as those terms are defined at Section 9.1.202 of this Code, or other business in which rooms are rented as the principal use of a building devoted to lodging. SECTION 4. MORATORIUM ESTABLISHED. In accordance with the authority granted to the City of Oakley by California Government Code Section 65858 and for the reasons set forth herein above, commencing as of the effective date of this Ordinance and continuing thereafter for a period of forty-five (45) days to and including November 23, 2018, no approvals may be made or issued by the City, its officers or employees of any applications for a use permit, variance, building permit, business license or any other applicable entitlement or permit, for the use of any land within the City as a Short-Term Rental or the commencement, establishment or operation of a Short-Term Rental thereon. For the period of this Ordinance, or any extension thereof, a Short-Term Rental shall be considered a prohibited use in any zoning district of the City and neither the Planning Commission, the City Council nor City staff shall approve any use permit, license, certificate of occupancy, zoning code or general plan amendment authorizing the use of any land within the City as a Short-Term Rental. SECTION 5. PROHIBITION. No person shall commence or establish the operation of any Short-Term Rental, as defined in this Ordinance, within the City limits of the City of Oakley during the period this Ordinance is in effect. SECTION 6. VIOLATION A PUBLIC NUSIANCE. The commencement, establishment or operation of any Short-Term Rental, as defined in this Ordinance, within the City limits of the City of Oakley during the period this Ordinance is in effect is declared to be a public nuisance and poses a current and immediate threat to the public health, safety and welfare. No property in any zone of the City is to be used for purposes of a Short-Term Rental during the period this Ordinance is in effect. The use of any property for such purpose shall be a public nuisance. A violation of this Ordinance shall be and is hereby declared to be contrary to the public interest and shall, at the discretion of the City, create a cause of action for injunctive relief as well as any other available civil remedies. Additionally, any person that violates this 80 00062128.1

Ordinance may be subject to the City's applicable administrative remedies, including, but not limited to, the remedies provided in Title 1 of this Code. SECTION 7. SEVERABILITY. The City Council of the City of Oakley hereby declares that should any section, paragraph, sentence, phrase, term or word of this Ordinance be declared for any reason to be invalid, it is the intent of the City Council that it would have adopted all other portions of this Ordinance independent of the elimination herefrom of any such portion as may be declared invalid. If any section, subdivision, paragraph, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each section, subdivision, paragraph, sentence, clause and phrase thereof, irrespective of the fact that any one (or more) section, subdivision, paragraph, sentence, clause or phrase had been declared invalid or unconstitutional. SECTION 8. REPORT. The City Manager is authorized and directed to prepare the report required by paragraph (d) of California Government Code Section 65858 describing the measures taken to alleviate the condition which led to adoption of this Ordinance for presentation to the City Council no later than ten (10) days prior to the expiration of this Ordinance. SECTION 9. EFFECTIVE DATE; FOUR-FIFTHS VOTE REQUIRED. This Ordinance shall become effective immediately upon adoption if adopted by at least a fourfifths (4/5) vote of the total members of the City Council and shall be in effect for forty-five (45) days from the date of adoption, unless extended by the City Council as provided in California Government Code Section 65858. SECTION 10.

PUBLICATION.

The City Clerk shall certify to the passage of this Ordinance and shall cause this Ordinance or a summary thereof to be printed once within fifteen (15) days after its adoption in a newspaper of general circulation, published and circulated in the City of Oakley.

81 00062128.1

THE FOREGOING ORDINANCE was introduced at a regular meeting of the City Council of the City of Oakley held on the ____ day of __________________, 2018, and passed and adopted as an urgency measure on that date, by the following roll call vote, and shall be and become effective immediately:

AYES: NOES: ABSTENTIONS: ABSENT:

APPROVED:

____________________________________________ Randy Pope, Mayor

ATTEST:

____________________________________________ Libby Vreonis, City Clerk

Date

82 00062128.1

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